Dealing With Liens in Bankruptcy

Types of Liens

Knowing what type of lien a creditor holds is important for determining how you can deal with the lien in bankruptcy. This can get confusing, especially where the creditor has a non-consensual lien, which is a lien that you did not agree to. Here's a primer on the types of liens you may encounter.

Judgment Liens in Bankruptcy: Can You Get Rid of Them?

A judgment lien occurs when a creditor sues you, gets a judgment against you, and files a lien against your personal property to satisfy the judgment. You can avoid judgment liens in a Chapter 7 bankruptcy under the right circumstances.

What Is a Judgment Lien?

A judgment lien is a type of security interest that a judgment creditor can obtain against your property. Below you can learn how a creditor gets a judgment lien, what property the lien can affect, and more.

When the Creditor Gets a Lien Against Your Property

A creditor who records a lien against your property gets an interest in your property, which improves the creditor's odds of receiving payment for a debt. For instance, you’ll need to pay the creditor before selling the property or refinancing it, and the creditor might even use the property lien rights to force a sale of the property.

How Do I Get a Lien Off a Title After Bankruptcy?

How do I get a lien off a title after bankruptcy?

What Happens to Liens in Chapter 7 Bankruptcy?

What happens to liens on your property if you file for Chapter 7 bankruptcy? If a creditor has a lien, the creditor has rights against your property which secure your obligation to pay money you owe. Generally, if you don’t pay a lien creditor, it can take steps to take your property to satisfy the debt.

Will Filing For Chapter 7 Bankruptcy Remove A Tax Lien?

Although you can get rid of some tax debts in Chapter 7 bankruptcy, if a tax lien has been recorded against your property, you are unlikely to be able to remove it in Chapter 7 bankruptcy. There are a few exceptions, however. Read on for details.